Repositioning the Nigerian Insurance Industry for Sustainable Development: Risk Management Perspective

Abstract

For decades, risk management in emerging economics like Nigeria has relied on a reactive approach to risk financing which has become increasingly unsustainable due to a number of factors. The recent developments in global financial markets have raised serious questions about the management and oversight of the financial services industries, at both the micro level for individual entities and at the macro level for the system as a whole. This study emphasizes the need for involvement of insurance professionals in risk models that needs to be developed into a practice area where risk managers within the industry could be able to learn from established methods of risks modelling. It also revealed that repositioning insurance industry involves products innovation and creating awareness programmes about those products among the prospective customers. When these policies are sought for by individuals and businesses, economic waste resulting from random event will be minimized. This paper also revealed that insurance industry can be strengthened to reduce or manage individual and business for sustainable development. Various measures that insurance industry can use to promote financial stability, mobilize savings, facilitate trade and commerce, and complement government security programs are also covered in the study.

Keywords: Modernising Insurance Sector, Sustainable Development, Product Innovation, Individual risks, Business risks